A royal toast may now become a market boost: the USA has moved to remove tariffs on Scotch whisky after US President Donald Trump linked the decision to the state visit of King Charles III and Queen Camilla.
Trump highlighted the long-standing industry ties, noting that there had been strong “inter-country trade, especially having to do with the wooden barrels used.” He also directly credited the royal visit, stating: “The King and Queen got me to do something that nobody else was able to do, without hardly even asking! A wonderful honor to have them both in the U.S.A.”
Diageo, owner of Johnnie Walker, welcomed the return to tariff-free trade between the UK and the USA for Scotch whisky. Its shares rose in London by over 2% in early trading, reflecting investor hopes that relief in the key North American market could ease pressure on the spirits group.
The 10% tariff had weighed on Scotch whisky exports to the USA following a 2025 trade agreement. Peter Kyle, UK business and trade secretary, called the decision good news for an industry worth almost GBP 1 billion (USD 1.3 billion) in exports and supporting thousands of jobs.
The move also highlights the importance of the transatlantic whisky and bourbon supply chain, particularly the exchange of wooden barrels between Scotland and Kentucky. Industry representatives welcomed the announcement as a long-awaited step to restore smoother trade flows, though practical implementation will determine how quickly producers benefit.
